Gujarat Adani under pressure on Ahmedabad CGD

Vol 8, PW 11 (25 Aug 04) Midstream & Downstream

Gujarat Adani Energy is coming under intense criticism from local authorities for the delay in setting up its city gas distribution network in Ahmedabad.

Gujarat Adani must submit a Progress Report card on its work in Ahmedabad to Gujarat State Petroleum every month. During a meeting on 20th August to discuss progress, GSPC managing director DJ Pandian made clear his displeasure to Gujarat Adani Energy chief Sanjay Gupta.

We have failed on two counts, admits an Adani source. First we announced very aggressive completion dates.

Second we did not anticipate the problems involved from getting a certificate from the local municipality to digging up the roads. On 21st April last year, rivals Gujarat Gas, GAIL and Bharat Petroleum were surprised to learn that Adani had won a No Objection Certificate to set up a CGD network in the lucrative Ahmedabad circle and nearby Vadodara (Baroda).

All of them are ready to step in if Adani is forced to abandon work. Adani blames monsoon rains that continue to disrupt life in Gujarat for much of the construction delay.

These companies would face the same problems we are facing, adds Adani. We should have stopped work during the monsoon and started only after 15th September.

But fear of losing Ahmedabad and pressure from the state government convinced Adani to continue work when it should have stopped. Problems with the Ahmedabad Municipal Corporation forced the company to suspend work for 50 days.

We did not know that AMC does not allow anybody to dig after 15th May. The lanes and by lanes of the old city are so complex that we are laying pipes in metres not kilometres.

Gujarat Adani is also having problems finding labourers because they refuse to do manually intensive jobs during the monsoon and prefer to work in the fields.

LNG Summit